Political realism needed

Three political parties represented in New Zealand's
Parliament have now set out their agendas for the year ahead
with only the Government in a position to put into action any
of the plans it revealed in a speech by Prime Minister John
Key.

Mr Key has made a priority of training and apprenticeships,
combining existing schemes and pouring more money into a
training scheme whereby employees and workers will receive
financial rewards for signing up. The Government has been
under fire for a so-called manufacturing crisis as the
combined Opposition parties sought an inquiry into the
manufacturing industries. The most popular figure is that
40,000 manufacturing jobs have disappeared during the John
Key-led coalition's four years in office. With New Zealand's
unemployment hovering at uncomfortable levels, it needs to be
remembered that if every one of those people was still out of
a job, the unemployment level would be much higher. Labour
and the Greens, natural coalition partners, have been
sparring about which one is actually the Opposition in
Parliament.

Labour leader David Shearer had an awkward start to his time
at the top, facing down a challenge from David Cunliffe
initially, followed by whispered rumours that he was a
temporary leader as the forces of the left combined to unseat
him. His speech at the weekend appeared to end all challenges
to his leadership. It was a true speech of Labour, one that
concentrated on higher taxes, more political interference in
the way New Zealanders live their lives, with an emphasis on
creating jobs through supporting the small to medium-sized
businesses that make up about 90% of New Zealand's employers.
Mr Shearer says people are telling him the current Government
has abandoned its role in job creation, affordable housing
and stopping people from fleeing the country through lack of
opportunities.

A quick look at the last immigration statistics shows, while
Australia was seen as the land of plenty, ''ordinary'' New
Zealanders are finding it increasingly hard to to make a go
of it there. The flood of Kiwis to Australia has slowed and
most economists are picking the tide to turn, placing extra
pressure on the housing market - in Auckland particularly.
Labour has promised to put 100,000 families into new homes of
about $350,000 per dwelling. Given the priority placed on
easing Auckland's market, it seems unlikely a section and a
home can be built in New Zealand's largest city for that
amount of money.

The Green Party, fresh from launching a grass-roots campaign
to find supporters prepared to help combat the deep pockets
of National, wants to stop the sale of the three state-owned
energy companies likely to be partially floated on the NZX
this year. The party wants to force a citizens-initiated
referendum in the mistaken belief the Government will stop
the sale. Given the Government has already taken on the Maori
Council, right to the Supreme Court, and the fact Mr Key
believes the last election was his mandate to proceed with
the sales, the money spent on a non-binding referendum will
be wasted.

The Greens also wanted the $1 billion-plus CBD Auckland rail
link built and the only way it can be funded is with taxpayer
dollars. Auckland is a central part of the New Zealand
economy, but

better roads, not rail, is the preferred option.

Higher taxes are always an issue. In the United States, it is
people earning more than $US400,000 ($NZ479,000) who are
deemed to be high income earners, not about $80,000 as in New
Zealand. Here, after trying to pay mortgages and bring up
families there can be little to spare.

This year, both Labour and the Greens want to stake out
ground in preparation for the 2014 election campaign. But Mr
Key, by reshuffling his Cabinet and sacking two senior
ministers to replace them with younger, fresher faces, is not
about to have the high ground taken away from him.
Increasingly, he looks likely to lead National into the next
campaign and this will be the year when Mr Key pushes policy
hard.

As Parliament starts today, the Opposition parties, all of
them, need to adopt a dose of common sense and realism if
they are to make an impression. Although many voters have a
wish list, not many want their taxes to increase to pay for
such policies.